The following balance sheet was prepared for the X, Y and Z partnership on March 31, 2021:
Question:
The following balance sheet was prepared for the X, Y and Z partnership on March 31, 2021: Cash – P25,000; Other Assets – P180,000; Liabilities – P52,000; X, Capital (40%) – P40,000; Y, Capital (40%) – P65,000; Z, Capital (20%) – P48,000. The partnership is being liquidated by the sale of assets in installments. The first sale of non-cash assets having book value of P90,000 realizes P50,000. Assume that each partner properly received some cash after the second sale of assets. The cash to be distributed amount to P14,000 from the third sale of assets, and unsold assets with a P6,000 book value remain. How should the P14,000 be distributed to X, Y and Z respectively
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen